Belgacom's Acquisition of Telindus: a One-Way Love Affair
This case is available at ECCH with reference 309-068-1.
The Belgacom-Telindus cases revolve around corporate strategy and in particular the decision of the corporate parent to grow and expand the company via an acquisition. They lead the student through the dynamics of an acquisition and serve to highlight the different strategic decisions involved before, during and after such a deal.
The (A) case covers the pre-deal phase and looks at the strategic rationale, strategic fit and potential synergies. The (A) case recounts the unsolicited bid by the Belgian telecom operator, Belgacom, for an international ICT network integrator, Telindus, in a highly volatile and consolidating ICT industry. With its traditional core business under threat from new technologies, such as mobile telephony, the profitable Belgacom looks to acquire an integrator that will ensure that its top client base is secured, and possibly assist to better position Belgacom to offer corporate clients advanced communication and network solutions in the future. Due to the hostile nature of the bid, Telindus is shocked and swiftly starts talks with long-term business partner France Telecom. When France Telecom makes a counterbid for Telindus, the nature of the acquisition is changing drastically for Belgacom…
Belgacom decides to react swiftly and launches a higher bid. One week later, the company reports it had over 90 percent of the shares of Telindus. Telindus is now part of the Belgacom Group. The (B) case delves into the post-deal phase and the chosen and implemented integration approach as well as the organizational and cultural fit between the two organizations.